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Swing Trade Ideas – June 8, 2020

Market View

World markets are mixed ahead of the USA open. Asia and Europe are flat to down digesting gains. Yield curve is slightly steeper, again providing a catalyst for financials. USA markets are mixed with Nasdaq100 flat but Russell2000 +1.7% and DJIA +0.8% and S&P100 +0.55% so traders are using last week’s playbook. OPEC+ agreed to extend the production cuts (the ones that some countries are ignoring) so of course oil is up and many energy companies are strong, especially ones with shakiest balance sheets. Premarket the casinos, airlines and banks are leading along with semis. Expecting chop in the large cap indices today, but we will see.

Premarket names:

GILD up and AZN down on merger talk. Casinos and travel. AAL UAL SAVE MGM LVS CCL  etc are on fire again today.  Banks and Insurance are strong. AMD MU NXPI SWKS AVGO are all strong in the premarket. Semis have stalled a bit and may get a bid as money rotates. NXPI is the strongest and along with SWKS may get some 5G related lovin. CHWY LULU ADBE are reporting earnings this week. LULU is up slightly in the premarket. ADBE is a large Nasi stock so will need the market to cooperate

Stock Idea: AMD

AMD is in consolidation since moving down post earnings. Semis have been a leading sector that have slowed down with the shift into cyclicals. Today we are seeing semis strong in the premarket, which may signal that money can reenter.  Caveat is that the Nasdaq has been underperforming.

Target 56.80 and 58. Can use the 50 sma as a line in the sand to the downside.  Watch the SMH for confirmation.